KE Holdings (BEKE), China’s leading online property portal, has signed an agreement to acquire a 100% stake of Shengdu Home Renovation for up to RMB 8 billion ($1.2 billion), according to its filing on 5 July.

KE will pay in both cash and equity and expects the transaction to be completed in the first half of 2022.

KE started as a brick-and-mortar real estate agency under the name of Lianjia in 2001 in Beijing. After merging with Deyou in 2015, Lianjia’s operation covered most of the major cities in China. In 2018, it launched its listings platform company Beike. The online platform now also opens to third-party property agents.

Founded in 2002, Shengdu is a leading home renovation service provider in China, covering seven provinces in eastern China. The company recorded RMB 3.3 billion of revenue last year, which makes the deal appear to be a pricy one.

The deal reflects KE’s intention to expand its business scope, diversify its revenue streams and sustain its growth.

 

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